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Marange Subject to Zimbabwe’s Indigenization Law

Dec 13, 2017 3:29 AM   By Rapaport News
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RAPAPORT... The diamond industry will be one of only two sectors to which Zimbabwe’s “indigenization” law will still apply after a scaling-back of the law on black ownership.

The government will restrict the Indigenisation and Economic Empowerment law, which requires foreign companies active in the country to be majority-owned by local black people, to diamonds and platinum, newly appointed Minister of Finance and Economic Planning Patrick Chinamasa said in last week’s budget speech.

Following the announcement, ownership of the Marange fields (pictured), Zimbabwe’s main source of rough diamonds, remains unclear. The government set up the Zimbabwe Consolidated Diamond Corporation in December 2015, and subsequently declined to renew the mining licenses of the seven companies that previously operated at the site, non-profit Global Witness said in a report on the nation’s diamond sector in September.

Zimbabwe’s rough-diamond production stood at 1.8 million carats in the year to September, compared with 1.3 million carats in the whole of 2016, according to Chinamasa’s December 7 statement.

The government is also considering a special economic zone for diamond cutting in the city of Mutare, the minister said.
Tags: Rapaport News, Zimbabwe
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